Tuesday, June 26, 2007

Tax Break On Bakken Wells Means Christmas In July

Starting on July 1st, all Bakken wells drilled after that date for the next year will get a reduction in the current 11.5% ND state production and extraction tax to 7% on the first 75K bbls produced in those wells. This should be good news for both producers and royalty owners. Insiders claim some operators have postponed the spud dates of some projects and the tax holiday may bring in an additional ten rigs to the state.

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